trustees report & accounts 2012

Trustees Report & Accounts 2012For the year ended 31 December 2012

ActionAid is a registered charity in England and Wales (number 274467) and a company limited by guarantee, registered in England and Wales (number 1295174).

1 Trustees report for the year ending 31 December 2012 1 – Our objectives and activities 3 – Delivering on our global mission

8 Financial review

11 Governance, leadership and trustee declaration

14 Independent auditor’s report to members of ActionAid

16 Statement of financial activities 16 – Income and expenditure 17 – Balance sheets 18 – Cashflow statement

16 Notes forming part of the financial statements

34 Corporate directory

Contents

Su Su Hlaing (6) with her friends in front of her primary school in Set Pyar Kyin village, Myanmar. In 2012 ActionAid

programme in Myanmar enabling Su Su and the other children to continue their education.

PHOTO: ACTIONAID

In this report and accounts, we use the term ‘ActionAid’ to mean the UK charity and ‘ActionAid International’ or ‘the federation’ to describe the global federation of which ActionAid is a part.

1 Trustees Report & Accounts 2012

Welcome to the ActionAid Trustees’ Report & Accounts for 2012. Despite challenging economic times, I am proud to report that we have made good progress this year towards our UK and global strategy.

Our visionA world without poverty and injustice in which every person enjoys their right to a life of dignity.

Our missionTo work with poor and excluded people to eradicate poverty and injustice.

In 2012, ActionAid International continued to work with 5,000 communities in over 40 countries towards our vision. Our development work is grounded in local communities, it reinforces rights and helps secure sustainable change. We propose credible alternatives that can transform the lives of people living in poverty on a significant scale. We tackle the structural causes of poverty in our policy, advocacy and campaigning.

In October of this year, I was able to see for myself one example of lives transformed in Western Nepal. When the law was changed to emancipate the Kamaiya people from bonded labour, ActionAid Nepal did not just assume the job was done. Instead we continued to work alongside these very disadvantaged people for ten years so that they could realise their rights in reality. Some of the changes I saw were:

many excellent homesteads with solid walls, heaps of rice and plump buffaloes chewing contentedly in the yard,

school enrolment up from 50% to 98%,

a wonderful local school, where I saw an assembly addressed by three former pupils who were now a youth leader, an activist in the women’s movement and a teacher at the school itself,

three members of the recent national Constituent Assembly coming from the Kamaiya community - each standing for a different political party, and two of them women!

Progress like this cannot be achieved by a quick fix or a top-down approach. They are the quite remarkable fruits of the federation’s long term approach to development, enabling poor communities to grow their own leaders and take control over their own lives.

ActionAid in the UKActionAid is a member of the ActionAid International Federation. ActionAid supports the global mission through its three strategic priorities – delivering increased, sustainable, flexible and diverse income, taking action for long-term change and making ourselves stronger globally.

The Financial review outlines our progress in 2012 on delivering income. We have taken policy and campaigning action this year on biofuels, supermarket treatment of suppliers, tax justice and

Trustees Report for the year ending 31 December 2012 Our objectives and activities


women’s rights, these campaigns are described in the Delivering on our global mission section of this report. We have made ourselves stronger globally by working with colleagues across the ActionAid federation to develop its skills and capabilities, improving the federation’s ability to evaluate its work and demonstrate impact.

Future plans2012 was the first year of our six-year UK and global strategies. We will continue to focus hard on our strategic objectives, both in the UK and internationally, in order to deliver on our mission.

The past year has reinforced how tough the fundraising environment is. We will continue to test new channels and messaging to attract individual child sponsors and regular givers. While recognising the challenging economic backdrop, we continue to have ambitious fundraising targets for future years.

There is now a greater focus on measurable results, particularly from institutional donors and foundations. We welcome this emphasis on demonstrating the difference that our work is making to the lives of people living in poverty, while remaining committed to listening to communities and using participative approaches which are responsive and relevant to people’s needs and lives. For ActionAid, it is the people living in poverty that set the agenda.

Overall, this is a critical and exciting time for international development as major shifts take place in the global economic and political order. Such changes bring significant opportunities as well as new challenges.

We want to hear from you with any comments or questions – please e-mail me at [email protected]

Andrew Purkis OBE

Trustees’ statementThe trustees present their statutory report with the financial statements of ActionAid for the year 2012. The trustees’ report has been prepared in compliance with the Charities Act 2011 and is also a directors’ report as required by Section 415 of the Companies Act 2006.

Financial statements have been prepared in accordance with the accounting policies and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and requirements of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP 2005).

ActionAid is a UK registered charity and also a company, limited by guarantee. We are governed by a board of trustees who are also considered directors under company law.

The trustees have had regard to the Charity Commission’s guidance on public benefit. As well as pursuing our activities in the UK, ActionAid has made grants of over £39 million to ActionAid International towards providing public benefit in country programmes. Our global objectives and examples of what we have achieved across the International Federation are given in the next section “Delivering on our Global Mission”.

Our objectives and activities


Founded in 1972 in the UK, ActionAid is now part of a global organisation with its headquarters in the developing world. The federation is organised so that decisions are taken closer to where they have the greatest impact, giving much stronger accountability to those countries where our money is spent and to people whose lives the federation seeks to change for the better.

Globally, ActionAid International has five strategic objectives. We work to deliver these through campaigning and communities-based programmes in countries.

Strategic objective 1Promote sustainable agriculture and control natural resources for people living in poverty.

In order to live, we need unpolluted land, water and forests. But privatization of land is depriving the poorest and most marginalised people of their right to these natural resources. Financial support for small-scale farmers - especially women - will protect the environment and help to reduce poverty and hunger.

During 2012, we worked with rural women in over 20 countries to increase awareness of their rights to land and natural resources, and help them use their resources more effectively. We have worked in 30 countries to improve food security for smallholder farmers, especially through climate-resilient sustainable agriculture.

For example, in Gambia, Sierra Leone and Zambia, women have used the knowledge and skills from training to negotiate for their rights. In Kenya and Malawi, women have repossessed lost or grabbed land. In Zimbabwe, where land permits have always only been in men’s names, women have managed to get permits in their own names or jointly with their husbands.

In Guatemala, training and workshops organised for women have increased their knowledge of crop management and care of natural resources, boosting the food and income they can produce. Women farmers in Brazil and Lesotho who are facing severe weather conditions have been supported to move to alternative farming methods and seeds that are more resilient to climate change. Farmers in Vietnam have moved from rice to canna, which is both more drought-resistant and in greater demand in the market place.

Campaign activities have been targeted at local and national institutions. In 17 countries, rural women were mobilised into national networks and movements to support women’s rights to land. In Guatemala, as a result of campaigning and advocacy, the government committed to changes which cancel agrarian debts caused by redistributing

Delivering on our global mission


land, restore evicted families back to their lands and recognise the rights of indigenous people in communities.

ActionAid China mobilised experts to promote climate-resilient sustainable agriculture in the curriculum for Masters and PhD students, while in Zimbabwe, training on climate-resilient sustainable agriculture has been rolled out to over 13,000 people.

In the UK, we campaigned on biofuels and the ethical treatment of farmers by supermarkets to help people in poverty gain greater land and food security.

Food, not fuel - People are being forced off their land to make way for biofuels plantations, growing not food, but fuel for cars. In February 2012, ActionAid’s ‘Cost of Biofuels’ report, written jointly with Friends of the Earth, showed that biofuels make no economic sense. We lobbied hard across the ActionAid family in many countries, and in October the EU proposed new legislation to cap the amount of food-based biofuels that could count towards renewable energy in transport fuel.

Who pays? - After five years of ActionAid campaigning, the UK government introduced legislation – the Groceries Code Adjudicator (Supermarkets) Bill - to improve the ethical treatment of farmers by supermarkets by allowing farmers in developing countries to make anonymous complaints to the supermarket adjudicator and to give the adjudicator the power to fine supermarkets from Day One.

Strategic objective 2Advance the political influence of people living in poverty to hold governments and companies accountable.

Throughout the world, many people still live under regimes that perpetuate poverty and injustice. Their demands are growing louder. With support from ActionAid International, people are learning how to hold the state and other institutions accountable for upholding basic human rights.

We have worked in over 20 countries in 2012 on holding governments and other institutions to account for basic human rights. People we work with are becoming more aware of their rights and are understanding better the links between tax collection and public service provision.

People living in poverty have been mobilized to campaign on transparency of governments, accountability on budgets, their right to good quality public services, constitutional reforms and making industry more accountable.

Supported by ActionAid India, social movements pressured local governments to commit expenditure to the welfare of the scheduled caste population as they are some of the poorest and most marginalized groups of people. In Rwanda, women farmers are using social media to engage with the finance minister on budget processes and public investment, while in Mozambique, citizens are using score cards to monitor district plans and to access health and water services.

In Bangladesh, Dalit communities now have increased access to basic services, while in Pakistan, women’s groups successfully completed a water systems scheme giving some of the most deprived communities access to clean water. In Ethiopia, over 3,500 poor people organised through community radio groups to access new water schemes and health facilities. Meanwhile, the government of Vietnam has put mechanisms in place for people to participate and engage stakeholders in public services.

Campaign themes included anti-corruption in Brazil and Uganda and access to information in Mozambique. In India, the bonded labour campaign has already resulted in the government rescuing 600 bonded labourers, while rehabilitating and providing livelihood support to 200 labourers.

In the UK we campaigned on tax justice to support this strategic objective. Early in the year, we launched our Stop tax loopholes campaign, challenging the practice of UK companies using tax havens to avoid paying taxes that are due to developing countries where those UK companies operate. We combined mass supporter action with targeted lobbying and advocacy, and gave evidence to the International Development Committee. By the end of the year, corporate tax avoidance had risen



to the top of the UK political agenda and we worked hard to help put it on the agenda of the G8 meeting for 2013.

Strategic objective 3

Improve the quality of public education for all children and support young people to become drivers of change towards a poverty-free planet.

In low-income countries more than one billion people are aged 10-19. Despite this, the rights of children and young people are consistently denied and their voices are not heard. With good quality education, they can fulfil their dreams for a better future.

In 2012 we worked in over 20 countries towards better education and more confident, empowered young people.

We have helped to grow community participation to develop schools and make them more accountable. In Nigeria, there are now over 120 school management committees. These committees ensure that each school has a clear action plan to improve the lives of the children in the schools. In Lesotho, young people are now electing school council leaders to represent them in school management committees.

To help girls to stay in education, we have supported girls clubs, and championed curricula and teaching practices which are sensitive to the needs of both girls and boys. In Ghana, children attending girls clubs gained the skills and confidence to challenge discrimination and violence in school. As a result, the District Assembly built a model school designed to provide a better environment for girls. In Kenya, our Stop Violence Against Girls in Schools has empowered girls to enjoy their right to education without violence or intimidation, with many girls challenging their parents to allow them to stay on after primary school.

ActionAid Burundi and Rwanda are working on youth livelihoods by developing work and life skills.

In Rwanda, cooperatives support young people to improve agricultural production, train young people in tailoring or carpentry, or support job creation and business initiatives.

ActionAid Brazil campaigned to improve education quality by advocating for better federal funding for public education at national level, working with partners to secure a commitment from the Minister of Education and the President in support of the campaign. In Nepal, young people used social media to campaign for protecting farmers’ rights to land.

In the UK, more than 6,000 schools took part in the Send my friend to school campaign. Fired up by the Olympics, the children and young people took part in our Go for gold campaign, urging world leaders to keep their promise, made in 2000, to get all children into primary education by 2015. Around 100 MPs met with pupils and six schools delivered their message to Downing Street in person.

Strategic objective 4 Build the resilience of people living in poverty to conflicts and disasters and respond to disasters with people-centred, rights-based alternatives.

Climate change presents the greatest threat to the future of life on earth. However 90% of the people most affected live in developing countries. People living in poverty need great resilience to survive war and natural disasters and to adapt to climate change.

We worked in 18 countries during 2012 towards building resilience. People living in poverty are influencing local and national government to build disaster risk reduction into law, planning and practice.

In Kenya, schools-based disaster management committees have been set up and are negotiating with district education offices to improve risk reduction plans. Roof water harvesting was piloted with the Kenya Power Company, ensuring over



5,000 schoolchildren have access to safe, clean water.

ActionAid Bangladesh lobbied policymakers in the national government to ensure that national plans and budgets are accountable to disaster-affected communities, including women and children. As a result, the Disaster Management Act was approved, with funding. The Centre for Medical Education also agreed to include mass casualty management in the national medical curriculum for the first time.

We are also building awareness and skills among communities, to enable them to reduce the potential impacts of disasters and conflicts. In Bangladesh and Ethiopia, farmers are being supported to increase their security by diversifying crops, setting up seed banks, beekeeping, rearing livestock, establishing local savings and credit schemes. In drought-prone areas of Somaliland, many water harvesting structures have been built, increasing access to water for human and livestock consumption and for irrigation of crops.

In Ethiopia, vulnerable women and men have been trained in community early warning systems. When there was flooding in ten districts, community representatives were part of a joint committee which assessed and prioritized responses to the disaster’s impact. As a result, emergency assistance was delivered quickly to the districts in most need. ActionAid Haiti worked with partners to develop contingency plans and pre-position stocks before hurricane season, speeding the response to the impact of Hurricane Sandy.

An ActionAid Kenya project used mobile phones to improve communication and accountability to drought-affected communities in a remote part of the country. Messages are sent to multiple recipients who can feed back to ActionAid Kenya staff. Knowing when food distributions will arrive helps families organise their time, while sharing cattle prices make it easier to buy at the right price. The two-way system provides immediate feedback when deliveries are made, giving agencies up-to-date information about local food needs. The project won the Innovation Award in the 2012 Technology for Good Awards.

Strategic objective 5

Ensure that women and girls can break the cycle of poverty and violence, build economic alternatives and claim control over their bodies.

Women who seek change and who challenge male violence have been subjected to increasing harassment in recent years. ActionAid International defends the right of all women and girls to live free from violence, to control their bodies, to improve their health and to enjoy economic independence.

In 2012, more than 25 countries worked towards this objective. Work in communities is supporting women and girls to understand and start to challenge harmful traditional practices like female genital mutilation and early marriage. In Uganda, women and girls are forming community watch groups, identifying survivors of gender-based violence and referring them to shelters. In parallel, our campaigning and advocacy work is targeting changes in government policies and legal reforms. In the Gambia, two bills have been drafted on domestic violence and sexual harassment, ActionAid Gambia is part of the network lobbying for them to be passed into law.

In countries like Nigeria, Uganda and Sierra Leone, more women and girls are understanding their sexual and reproductive rights and as a result seeking medical services for contraception and other health needs. Reporting of domestic violence and rape has increased in communities where ActionAid International works, as women and girls become more confident to claim their rights to justice. In Vietnam, women have organised together to set up “reliable addresses” where survivors of domestic violence can be supported in safety.

The Safe cities initiative now involves eleven countries; its aim is to make cities safe places for women and girls by reducing violence in public places and providing essential services for the most vulnerable women. ActionAid Brazil has identified vulnerable young women in cities and raised their



awareness of sexual exploitation and drug addiction, while in Nigeria, safety audits in two universities have identified danger hot spots. ActionAid Cambodia has worked with two separate groups of vulnerable women - sex workers and female garment workers - to promote workers’ rights and stop violence against women in public places.

We are also supporting women to become more economically independent, thus growing their status and confidence. In Ethiopia, more women have joined and started to lead cooperatives and unions. In Guatemala, women farmers are working together to improve crop productivity, increasing food security and income. In Pakistan, women’s cooperatives were trained on how to market and sell their products and to source cheaper raw materials, while in Rwanda, Somaliland and Mozambique, women farmers are provided with financial support via grants and loans as well as technical support on agriculture and business management.

ActionAid Brazil is campaigning with women farmers to influence policies on food security and gain better access for women to government schemes that buy produce from small farmers. Women farmers are taking part in committees and councils at local, state and national level. As a result, government is buying more women farmers’ produce, ensuring a more stable market for their goods.

In the UK, we researched and lobbied for women’s rights in Afghanistan. We launched a new parliamentary network on women’s rights in Afghanistan, and published our research on the investment needed to tackle violence against women and girls there. The International Development Select Committee on Afghanistan reproduced a number of our recommendations on women’s rights and congratulated us on how far we had influenced their findings. We were also selected to write the Department for International Development’s (DfID) Theory of change on violence against women. This was published in November and will be used to guide DfID’s work on tackling violence against women and girls in 20 countries.


F


For the fifth consecutive year, we have been operating in a difficult economic climate in the UK and the economy is not expected to recover until later in the decade.

With the UK economy only growing by 0.2% in the year and ongoing uncertainty in the Eurozone, household incomes continue to be squeezed.

The Charities Aid Foundation estimates total giving to UK charities in 2011/2012 has fallen by 20% year on year in real terms, from £11bn to £9.3bn, the largest annual fall in the eight years of the survey. There was a marked decline in amounts given to overseas development, though this is affected by the huge response to the earthquake in Haiti and the floods in Pakistan in 2010.

Against this backdrop, total income from individual supporters remained broadly level, while income from emergencies and institutional programmes fell.

We continued to enjoy great loyalty from our existing supporters, and the average financial contribution per supporter increased during 2012. We recruited 1,000 more financial supporters than in 2011, but it remains difficult to find new supporters, particularly for the long-term financial commitment of sponsoring a child. Our overall numbers of financial supporters have fallen, when people stopping contributions are taken into account. We plan to test new approaches to fundraising in 2013 and remain confident that we are well positioned for the future.

Overall total income at £59.5m was £3.2m less than 2011. Around £1m of this fall related to emergencies, with no new emergency response emerging in 2012 (over £1m was raised for the drought in East Africa in 2011). Income from the Disasters Emergency Committee was £300k lower. Excluding emergencies, income was down £2m, or 4% on last year due to certain project funding ending.

Where does our money come from?We receive income from a number of sources and the proportions have not changed significantly from 2011, with committed giving from individuals accounting for the largest element; this wonderful funding from individuals is the best guarantee of our true independence as a charity.

Financial review

A Committed giving £35.7m 60%

B Appeals, individuals & legacie £5.4m 9%

C NGOs, trusts & companies £4.2m 7%

D DEC £2.9m 5%

E Governments & EU £11.2m 19%

F Other < £0.1m 0%

A

B

C

D

E


Voluntary incomeVoluntary income includes all money received from individual supporters, appeals and core grants that support our work generally.

Despite the fall in supporter numbers, income from committed giving was £35.7 million, broadly consistent with 2011. We primarily use Direct Response TV and face-to-face approaches to recruit new committed giving supporters. We monitor campaign results closely and adapt our approaches to maximise the income from our fundraising investment. For a second year we have used face-to-face campaigns to find new regular giving supporters. It has been challenging to find suitable fundraising agencies and to ensure that new givers maintain their support. We are developing strategies to address these constraints in 2013.

Supporters were again very generous in their legacy gifts; these continue to be a valuable source of flexible income.

There was no significant emergency appeal in 2012. We continued to receive some income from the Disasters Emergency Committee for emergencies which started in 2010 and 2011; this reflects our long-term work to support people beyond the immediate emergency response.

We received £4.1m from the Department for International Development as part of its Programme partnership arrangement, which contributed significantly to our global programmes.

Income from charitable activitiesThis income category includes grants received from governments and other public bodies that contribute directly to our charitable purposes. Overall income from charitable activities fell from £12.9m million to £11.2 million. As this income is primarily project-based it can vary from year to year reflecting the lifecycle of large projects. For example, ActionAid received lower levels of funding from the European Union in 2012 than the year before.

Once again we have received significant support from the Big Lottery Fund for our ‘Violence Against Girls’ project in Kenya, Mozambique and Ghana, and from Comic Relief for ‘Transforming Girls’ Education’ in Nigeria, Tanzania and other countries. We also secured new funding from both foundations during the year – from Comic Relief for ‘reducing sexual

exploitation of girls in Recife’ in Brazil and from the Big Lottery Fund for ‘empowering women and girls to claim their rights’ in Somaliland.

How was the money spent?The chart below shows our 2012 expenditure split between fundraising costs, our charitable work, governance, and support costs:

During the year ActionAid continued to review the organisation to put the best structure in place to deliver the new strategy. This review started at the end of 2011 and will be completed in early 2013. In 2012, it led to 19 redundancies, costing £268,000. While this review has, regrettably, led to staff uncertainty and some job losses, these were essential changes. Employee numbers reduced from 172 to 157, mostly due to the change in structure and associated staff turnover. Despite the uncertainty, employee engagement improved substantially during the year. Some of the savings generated by the restructure will be reinvested to help us to deliver on our strategic objectives, for example, we plan to invest in fundraising teams in 2013 to support growth in government and emergency funding.

Total staff remuneration increased by 3%, from £7.1m in 2011 to £7.3m. Excluding one-off redundancy costs, remuneration fell to £7m. This includes a 2% inflationary increase in line with the rest of the sector. We are reviewing our remuneration structure to ensure that it remains both affordable and competitive in the market.

A Raising funds £9.2m 15%

B Support £3.7m 6%

C UK campaigning & education £3.4m 6%

D Governance £0.1m <0%

E Overseas charitable activity £45.1m 73%

D

A

B

C

E

Financial review


Costs of generating fundsWe continue to explore new ways to reach potential supporters. We set out at the start of the year to recruit 8,600 new child sponsors and fell short of this target by about 900, though this was still 700 more than in 2011. Regular giving proved more challenging, we missed our target of 7,000 by about 1,300 due to one of the face to face fundraising agencies going into administration at the start of the year.

Costs of generating committed giving income increased by 5% to £6.7 million, reflecting higher levels of supporter recruitment. With the total income unchanged, the fundraising ratio (cost divided by income) rose slightly from 18% to 19%. This is inevitable in a period of increased supporter recruitment where most costs are incurred upfront while income is mostly received in instalments in future years.

Spending on our charitable activitiesActionAid’s charitable activities are all focussed on changing the lives of people living in poverty, by delivering our strategic objectives. Our charitable activities include supporting ActionAid International in building its capacity and delivering programmes on the ground, as well as our policy and campaigning activities, and our work with schools and young people in the UK.

Support costsOur support costs increased to 6% of total expenditure in 2011. This includes staff working on strategy, planning, demonstrating the impact of our work, communications, HR, finance, IT, and facilities management, in addition to some one-off transitional costs relating to our restructure.

Reserves policy Reserves are funds that we have yet to spend. There is more detail about how we classify the different types of reserve funds in section 1 of the Notes to the accounts about accounting policies. The level of money that we hold is affected by various factors, for example the timing of our grants to ActionAid International.

Our supporters give us money expecting us to deliver on our vision, so we take care not to hold excessive funds. In 2011 we decided to reduce the level of reserves held from 3 to 2.6 months of

planned expenditure. Our trustees believe that this balances the need to apply funds to our mission whilst ensuring sufficient funds to run our day-to-day business, pre-finance some projects funded by the European Union and insulate us from unanticipated shocks.

At the end of 2011 ActionAid’s general reserves at £7.2m were £3.4m over the 2.6 month target; it was agreed that this would be reduced during 2012 by granting more funds to ActionAid International to support other countries to develop their fundraising capability to become more self-sufficient financially. £10m was granted during 2012, reducing general reserves to £5.8m.

Most restricted funds are passed directly to ActionAid International. Some funds, mostly from the EU, are managed by ActionAid. Where such income has been received but not spent by the year end, it is shown as restricted reserves and will be spent in the following year.

Grant making policyWe grant our funds to the ActionAid International secretariat for wider disbursement to the federation’s country programmes and its partners, according to the management agreement that exists between ActionAid and ActionAid International.

These accounts reflect the financial performance of the UK charity; however this is only part of the ActionAid International Federation. To find out more about ActionAid International’s work or finances, please see the website, www.actionaid.org

Financial review


The board has to keep a constant eye on the balance between a good understanding of impact, serious accountability to our supporters for the use of their money, and listening to people living in poverty - not principally to people with money to give - as to what their requirements are and how they can best take control of their own lives.

Trustees and their statutory responsibilities Trustees are charged with setting the strategic direction of ActionAid and checking our progress against it. The board, however, delegates the day-to-day operations to a senior management team. The board meets formally at least four times a year – though there is regular contact between the chair and other trustees between meetings.

Trustees are recruited by open selection. We have undertaken a skills audit to ensure board diversity and appropriate skills are secured when new trustees are recruited as some of the current trustees come to the end of their terms of office. Trustees, including the chair, are appointed for a basic three-year term, renewable for a further three years.

There is ongoing contact between the executive team and trustees outside formal meetings and there are regular meetings between the chief executive and the chair. A chairs group has been established to show distributed and diverse leadership and ensure good communication. This group is made up of chair of the board and the chairs of the two board committees.

ActionAid International also appoints a representative to the ActionAid Board with the agreement of the ActionAid Board, and that person plays an invaluable two-way role in ensuring effective communication and alignment between ActionAid International and ActionAid. ActionAid plays an active role in the ActionAid International General Assembly, the top-level decision-making body in the federation. In line with our strategy and plan, we continue to focus on improving the quality of the dialogue since we recognise that there is a mutual need and dependency in ensuring the federation is well governed and well managed.

ActionAid International also pays for Trustee indemnity insurance for the UK trustees under a global policy.

The board of trustees delegates certain functions to committees of trustees.

Performance, finance & audit committee

Encourages and safeguards the highest standards of integrity, financial reporting and internal control, ensures that ActionAid’s systems of financial control comply with Charity

Governance, leadership and trustee declaration


Commission guidelines and provides reasonable but not absolute assurance against material misstatement or loss.

Reviews organisational performance and results.

Reviews the remuneration of the executive director and the principles for staff remuneration.

Governance & board development committee

Oversees the annual governance review. Considers governance issues, assesses the board’s composition and is responsible for the recruitment and induction of new trustees.

Manages the board development plan which maps out the role of the board in ensuring that we deliver the strategy.

Trustee responsibilities for

The trustees (who are also directors of ActionAid for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the

charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each trustee is aware:

there is no relevant audit information of which the charitable company’s auditors are unaware; and

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Trustee development Personal development needs are identified through individual trustee appraisals. All trustees are invited to visit ActionAid International’s programme work and to participate in staff learning circles, as well as attend relevant training depending on their personal development needs.

Internal controlThe trustees have overall responsibility for ActionAid’s systems of internal control. Trustees recognise that systems of control can only provide a reasonable and not complete assurance against inappropriate or ineffective use of resources, or against the risk of errors or fraud.

Trustees remain satisfied that ActionAid’s systems provide reasonable assurance that the charity operates efficiently and effectively, safeguards its assets, maintains proper records and complies with relevant laws and regulations.

We operate a comprehensive accountability system. This includes annual planning, with plans approved by trustees, and annual budgets. Trustees consider actual results compared with plans and forecasts, and non-financial performance data. Other controls include delegation of authority and segregation of duties.




The internal audit function of ActionAid International regularly reviews internal controls and submits reports to the Performance, finance and audit committee.

Risk management Trustees have identified and reviewed the major strategic, business and operational risks faced by the charity and are satisfied that reasonable steps are being taken to mitigate exposure and impact. Major risks identified are:

The impact of the recession on our ability to raise funds cost effectively.

The implications of reduced resources available to deliver our new strategy.

In a time of austerity, the negative shift in the public’s perception of international development.

The nature of any funding mechanism replacing DFID’s current Programme partnership arrangement in 2014

Mechanisms used to identify, manage and mitigate the impact of risk include the annual planning process, maintaining a risk register which senior managers and trustees reviewed and updated throughout the year.

We have also paid particular attention to the management of certain financial risks over 2012 including credit checking, foreign exchange and liquidity to comply with Companies Act 2006 disclosure requirements.

AuditorsSayer Vincent were appointed as the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the Trustees on 10 May 2013 and signed on their behalf by

Andrew Purkis (Chair)

Patricia Whaley (Honorary Treasurer)


We have audited the financial statements of ActionAid for the year ended 31 December 2012 which comprise the statement of financial activities, balance sheet and cash flow statement and the related notes.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorsAs explained more fully in the Statement of Trustees’ responsibilities set out in the trustees’ report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the trustees’ report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Independent auditor’s report to members of ActionAid


In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2012 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Catherine L Sayer (Senior statutory auditor) 21 May 2013

for and on behalf of Sayer Vincent, Statutory Auditors, Sayer Vincent, 8 Angel Gate, City Road, London EC1V 2SJ

Independent auditor’s report to members of ActionAid


Restricted Unrestricted Total Total funds funds 2012 2011 Notes £’000 £’000 £’000 £’000

Incoming resources Incoming resources from generated funds: Voluntary income 2a 23,735 24,400 48,135 49,680 Activities for generating funds - 46 46 51 Investment income 2c (3) 29 26 25 Incoming resources from charitable activities: Grants 2b 10,752 442 11,194 12,895 Trading income from charitable activities 2b - 53 53 67Other income 2d - - - (21)Total incoming resources 34,484 24,970 59,454 62,697 Resources expended Cost of generating funds: Costs of generating voluntary income 4 - 11,286 11,286 10,778 Fundraising trading: costs of goods sold and other costs 4 - 8 8 8Charitable activities 6 34,825 15,237 50,062 52,979Governance costs 5 - 108 108 129 Total resources expended 34,825 26,639 61,464 63,894Net outgoing resources before transfers (341) (1,669) (2,010) (1,197)Gross transfers between funds 15 5 (5) - -Net expenditure for the period before other recognised gains and losses (336) (1,674) (2,010) (1,197) Exchange rate losses - (65) (65) (113) Net expenditure for the period before other recognised gains and losses (336) (1,739) (2,075) (1,310) Total funds brought forward at 1 January 2,461 8,449 10,910 12,220 Total funds carried forward at 31 December 2,125 6,710 8,835 10,910

The notes on pages 19-33 form part of these financial statements. There are no recognised gains and losses other than those shown above. All incoming resources expended derive from continuing activities. Movements in funds are disclosed in notes 14 and 15 to the Financial Statements.

For the year ended 31 December 2012

Statement of financial activitiesIncome and expenditure


2012 2011 Notes £’000 £’000

Tangible fixed assets 11 870 941Current assets Debtors 12 1,754 1,893Cash at bank 11,378 11,631 13,132 13,524Liabilities Creditors: amounts falling due within one year 13 5,167 3,555Net current assets 7,965 9,969Net assets 8,835 10,910 Funds Restricted funds 15 Income funds 2,125 2,461 Unrestricted funds Designated funds 14 870 1,247 General funds 5,840 7,202Total funds 8,835 10,910

The financial statements were approved by the Trustees on 10 May 2013 and were signed on their behalf by

Andrew Purkis Patricia Whaley(Chair) (Honorary treasurer)

10 May 2013

As at 31 December 2012

Balance sheets


For the year ending 31 December 2012

Reconciliation of net (outgoing)/incoming resources 2012 2011to net cash inflow from operating activities £’000 £’000

Net outgoing resources after other recognised gains and losses (2,075) (1,310)Depreciation 199 194Decrease in debtors 139 1,545Increase/(Decrease) in creditors 1,612 (3,290)Interest received (26) (25) Net cash (outflow) from operating activities (151) (2,886) Cash flow statement Net cash (outflow)/inflow from operating activities (151) (2,886)Interest received 26 25Purchase of tangible fixed assets (128) (114) Cash inflow before management of liquid resources (253) (2,975) Management of liquid resources Decrease in short-term bank deposits - 7,500 Increase in cash in the period (253) 4,525 2011 Cashflow 2012Analysis of cash as at 31 December £’000 £’000 £’000

Cash at bank 11,631 (253) 11,378Total cash and liquid resources 11,631 (253) 11,378

Cashflow statement


For the year ending 31 December 2012

Notes forming part of the financial statements

1. Accounting policies

Basis of accounting

These financial statements are prepared under the historical cost convention, and in accordance with the Companies Act 2006, Accounting and Reporting by charities: Statement of Recommended Practice and applicable Accounting Standards.

Trading subsidiary

There was no activity in the subsidiary undertaken in the year and therefore the accounts are not consolidated.

Country programmes

ActionAid maintains legal ownership of a number of overseas country programmes which are not included in these financial statements. This treatment reflects how the programmes are organised. Their activities, assets and liabilities are under the direction of ActionAid International and are deemed to be ‘controlled’ by the ActionAid International board. Although assets may revert to ActionAid in the highly unlikely event that the transfer to ActionAid International is halted, the economic rights and obligations connected with country programmes have been transferred to ActionAid International under the terms of various formal agreements between the entities.

Fund accounting

All funds raised by ActionAid are used in the furtherance of its charitable objects. There are two types of funds as follows:

a. Restricted funds are raised on the basis of an agreement or understanding with the donors that their use will be restricted to certain specified projects, activities or areas of operation. These restricted funds are accounted for separately.

b. Unrestricted funds are those that are spent at the discretion of ActionAid’s trustees for use on any of the charity’s general charitable purposes. With the consent of the relevant donors, tax recovered through Gift Aid is generally treated as unrestricted.

Designated funds are unrestricted funds that have been set aside by the trustees for a specific purpose. ActionAid has one designated fund as at 31 December 2012, a fixed asset fund - the value of which represents the net book value of the fixed assets in the UK originally purchased from unrestricted funds.

The accounting for sponsorship and other committed giving income is in accordance with the information provided to supporters. For all child sponsorships starting after 2003 income is restricted as follows: 20% is unrestricted. Of the balance, 70% is restricted to benefit the community in which the child lives, 10% can be spent on wider activities in the same country, 10% can be applied to international activities with the remaining 10% available to cover local sponsorships administration and information gathering.

ActionAid aims to make its income more flexible by encouraging supporters to transfer from child sponsorship to less restricted forms of giving over time such as Next Step. 20% of Next Step income is also unrestricted. Of the balance, 90% is spent within the selected country, while 10% may be applied to international activities.

Incoming resources

The Statement of Financial Activities (SOFA) recognises incoming resources when ActionAid believes it is entitled to them, the income is judged virtually certain of receipt and the amount can be reliably quantified.

Grants from the Department for International Development (DfID), European Union (EU) and European Community Humanitarian Office (ECHO) are recognised when there is a formal agreement for their receipt and under this agreement ActionAid considers that all outstanding conditions relating to the receipt of income have been met and the amount of receipt can be ascertained with reasonable certainty.

Where donor specified conditions state resources received in the year must be spent in subsequent accounting periods, the resources are carried forward in creditors as deferred income under the terms of the agreement.


Gifts in kind are credited to income on the basis of the lower of a market-price valuation or the gross value to ActionAid and the corresponding expenditure is taken to the appropriate heading on the SOFA or is capitalised.

Legacy income is included in the statement of financial activities when the charity is advised by the representative of an estate that payment will be made or property transferred, and the amount involved can be quantified.

Income is shown gross before any deduction of associated costs except where sums are received from local fundraising groups in the UK net of direct expenses incurred by these groups. The amounts are not material in the context of ActionAid’s total income.

Resources expended

All expenditure is accounted for on an accruals basis. Costs reported under each heading in the statement of financial activities reflect the allocation of activities directly attributable to that heading and an apportionment of support costs (see below).

Where costs of direct activities fall under more than one heading, they are apportioned on a consistent basis by senior management.

The cost of generating funds represents expenditure incurred in the UK on raising funds from committed giving supporters, institutional donors, and other members of the public, as well as keeping them informed about how their donations are being spent.

Charitable activities comprise:

- Grants from ActionAid to ActionAid International to be spent on managing and delivering the long-term development and emergency relief and rehabilitation projects in ActionAid International country programmes worldwide.

- Expenditure of funds received from the European Union for projects in country programmes.

- Policy-influencing, campaigning and education work carried out in the UK and internationally.

Governance costs are the costs associated with the governance arrangements of the charity. The costs included in this category relate to organisational administration and compliance with constitutional and statutory requirements.

Support costs include expenditure on general management, payroll administration, budgeting and accounting, information technology, property management, communications, human resources and financing. Costs are allocated across the categories of the costs of generating funds and charitable expenditure. The basis of the cost allocation is staff numbers.

Tangible fixed assets and depreciation

Tangible fixed assets costing more than £5,000 are capitalised and included at cost, including any incidental expenses of acquisition.

Depreciation is calculated on a straight-line basis for the following categories of fixed assets:

Office equipment:

Computers 3 years

Other equipment 5 years

Leasehold improvements 15 years

Leases

Rentals applicable to operating-lease contracts, where substantially all the benefits and risks of ownership remain with the lessor, are charged to the statement of financial activities on a straight-line basis over the lease term.



Short-term bank deposits

Short-term bank deposits are funds not instantly accessible at the balance sheet date.

Pensions

ActionAid contributes to a defined contribution pension scheme in the UK and contributions for the year are charged in the statement of financial activities as they become due.

Foreign currencies

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. All foreign currency balances have been translated at the exchange rate prevailing at the balance sheet date. Gains and losses on translation are included in the statement of financial activities.

Taxation and irrecoverable VAT

As a registered charity, ActionAid is potentially exempt from tax on income and gains falling within section 505 of the Income and Corporation Taxes Act 1988, and section 256 of the Tax of Charitable Gains Act 1992.

In common with many other charities, ActionAid is unable to recover the majority of VAT that is incurred on purchases of goods and services in the UK. The amount of VAT that cannot be recovered is included within the appropriate underlying cost.

Related party disclosures

The charity has taken advantage of the exemption that is conferred by Financial Reporting Standard 8: Related Party Disclosures, which allows it not to disclose transactions with group undertakings that are eliminated on consolidation. Related party transactions that do not fall within this exemption are detailed in note 18.



2. Incoming resources Total Total Restricted Unrestricted 2012 20112 (a) Voluntary income £’000 £’000 £’000 £’000

Committed giving 19,829 15,897 35,726 35,935Appeals and individual donors 1,189 2,297 3,486 4,137Disasters Emergency Committee appeals - see below 2,702 190 2,892 3,185UK government - Partnership Programme Arrangement (see note 17) - 4,144 4,144 4,154Legacies 15 1,872 1,887 2,269Total 23,735 24,400 48,135 49,680 Disasters Emergency Committee (DEC) Appeals income Haiti earthquake 620 43 663 1,362Pakistan floods 920 64 984 1,153East Africa crisis appeal 1,170 83 1,253 543Vietnam Cyclone Ketsana appeal (8) - (8) 127Total Disasters Emergency Committee 2,702 190 2,892 3,185

DEC is the umbrella body for the 14 leading charities in the UK responding to major international disasters. Its aim is to raise money cost effectively in the UK from the general public. The monies raised are distributed to the charities on the basis of an agreed formula reflecting the charities’ capacity and expertise.

Non- Emergency emergency income income Total All emergency / non-emergency income by type - 2012 £’000 £’000 £’000

Incoming resources from generated funds: Voluntary income 2,974 45,161 48,135 Activities for generating funds - 46 46 Investment income - 26 26 Incoming resources from charitable activities: Grants (note 2b) 4,845 6,349 11,194 Trading income from charitable activities (note 2b) - 53 53 Other incoming resources - - -

2012 Total 7,819 51,635 59,454 2011 Total 8,960 53,624 62,584

Emergency income fluctuates depending on the number and severity of emergencies. The non-emergency income figure shows how underlying income changes year on year.



Total Total Restricted Unrestricted 2012 20112 (b) Incoming resources from charitable activities £’000 £’000 £’000 £’000

(i) Grants Grants from governments and other public authorities: UK government (see note 17) 322 - 322 497European Union 5,599 258 5,857 6,621Government of Jersey 179 - 179 159Government of Isle Of Man 50 - 50 -Government of Guernsey 105 - 105 119Dutch Ministry of Foreign Affairs (see note 17) 496 - 496 -Total grants from governments and other public authorities 6,751 258 7,009 7,396 Grants from companies, trusts and NGOs: Big Lottery Fund (see note 17) 874 - 874 1,070Comic Relief (see note 17) 738 - 738 492Other grants 2,389 184 2,573 3,937Total grants from companies, trusts and NGOs 4,001 184 4,185 5,499 Total grants 10,752 442 11,194 12,895

(ii) Trading income from charitable activities Sale of educational materials and fees for school talks - 53 53 67Total income from primary purpose trading - 53 53 67Total income from charitable activities 10,752 495 11,247 12,962(c) Investment income Interest on deposits (3) 29 26 25(d) Other incoming resources Other income - - - (21)Total - - - (21)

Total Total Restricted Unrestricted 2012 20113. Support costs £’000 £’000 £’000 £’000

Support costs comprise the following items: Communications - 378 378 357UK director costs - 157 157 152Finance - 672 672 488Human resources - 743 743 307Information technology - 668 668 590Office administration - 258 258 207Performance and accountability - 264 264 287Property costs - 512 512 567 - 3,652 3,652 2,955

Support costs have been allocated to the categories below on the basis of employee numbers working in each relevant area.



Total Total Restricted Unrestricted 2012 20113. Support costs continued £’000 £’000 £’000 £’000

Costs of generating funds (note 4) - 2,118 2,118 1,684Charitable activities (note 6) - 1,534 1,534 1,271 - 3,652 3,652 2,955 Total Total Restricted Unrestricted 2012 20114. Costs of generating funds £’000 £’000 £’000 £’000

Costs of generating voluntary income Committed giving - 6,675 6,675 6,343Other voluntary income - 2,493 2,493 2,751 - 9,168 9,168 9,094 Support costs allocated (note 3) - 2,118 2,118 1,684Total costs of generating voluntary income - 11,286 11,286 10,778 Trading - 8 8 8Total costs of generating funds - 11,294 11,294 10,786

Based on the above information and the incoming resources in note 2, the ratio between direct fundraising costs (excluding support costs allocated) and the income generated for each major area of voluntary income is as follows:

Total % Total % 2012 2011

Committed giving 19% 18%Other voluntary income 20% 20%Overall voluntary income 19% 18% Total Total Restricted Unrestricted 2012 20115. Governance costs £’000 £’000 £’000 £’000

Auditor’s remuneration - statutory audit - 45 45 50Senior staff costs incurred on governance work - 35 35 32Costs of conducting board meetings - 8 8 13Trustee recruitment - - - 28Governance review - - - 6Legal fees - 20 20 -Total governance costs - 108 108 129



7. Grants to other parts of ActionAid International

Total Total 2012 2011Restricted funds: £’000 £’000

Africa Burundi 606 503Democratic Republic of Congo 25 91Ethiopia 1,289 721Ghana 1,125 796Kenya 3,164 2,875Lesotho 313 213Liberia 131 30Malawi 897 801Mozambique 492 486Nigeria 547 610Rwanda 480 291Senegal 334 212Sierra Leone 971 997Somaliland 295 343South Africa 134 148Tanzania 180 187The Gambia 1,070 1,113Uganda 1,442 1,427Zambia 157 155Zimbabwe 194 215Total in Africa 13,846 12,214

Total Total 2012 2011Restricted funds: £’000 £’000

Asia Afghanistan 482 453Bangladesh 715 719Cambodia 477 564China 349 390India 3,236 3,485Myanmar 309 89Nepal 701 651Pakistan 1,633 1,762Thailand - 14Vietnam 479 635Total in Asia 8,381 8,762

Latin America and the Caribbean Brazil 640 408Ecuador 107 149Guatemala 510 555Haiti and Dominican Republic 1,232 1,864Nicaragua 106 109Peru 235 194Total in Latin America / Caribbean 2,830 3,279

Restricted Unrestricted 2012 20116. Charitable activities £’000 £’000 £’000 £’000

Charitable grants to ActionAid International 28,244 10,357 38,601 37,569ActionAid International (grants in kind representing support costs incurred on behalf of ActionAid International) - 542 542 874Total grants to other parts of ActionAid International 28,244 10,899 39,143 38,443Grants to partner organisations 1,521 15 1,536 1,080Total grants (see note 7) 29,765 10,914 40,679 39,523 Remittances to country programmes for EU projects 4,112 - 4,112 8,267Expenditure incurred in the UK for EU projects 307 (1) 306 242UK Programme work 641 2,790 3,431 3,676Charitable activities 34,825 13,703 48,528 51,708 Support costs allocated (note 3) - 1,534 1,534 1,271

Total charitable activities 2012 34,825 15,237 50,062 52,979Total charitable activities 2011 39,029 13,950

To see how ActionAid International allocates resources, including those raised in the UK, please see the ActionAid International Financial Report and Accounts.

Total direct charitable activity



Total Total 2012 2011continued £’000 £’000

ActionAid International - projects involving more than one country 3,187 4,580Total restricted funds 28,244 28,835 Unrestricted funds:ActionAid International (cash grants) 10,000 8,378Country Programmes (grants designated as part of Department for International Development Programme Partnership Arrangement) 357 356Unrestricted charitable grants to ActionAid International 10,357 8,734ActionAid International (grants in kind representing support costs incurred on behalf of ActionAid International) 542 874Total unrestricted funds 10,899 9,608Total grants to other parts of ActionAid International 39,143 38,443 Grants to partner organisations: UN Habitat 235 -Malteaser 217 -Christian Aid 191 -Concern Worldwide 186 335Oxfam GB 164 173Plan International 159 149Islamic Relief 119 214Help Age 112 Restricted grants (individually under £100,000) 138 198Total restricted grants 1,521 1,069 Unrestricted grants (all individually under £100,000) 15 11Total grants to partner organisations 1,536 1,080Total grants 40,679 39,523

Total Total 2012 20118. Particulars of employees Number Number

The average full time equivalent number of employees during the year was:Campaigns and policy, Programmes 46 51Fundraising 63 68Support staff 36 40Total 145 159

The average number of staff (including part-time staff) in the year was 157 (2011: 172)

7. Grants to other parts of ActionAid International



Total Total 2012 20118. Particulars of employees continued £’000 £’000

Total remuneration of employees (full-time and part-time) was: Gross wages and salaries 6,285 6,057Social security costs 567 605Pension contributions 433 409Total 7,285 7,071 The number of staff whose emoluments are greater than £60,000 are shown below 2012 2011 £’000 £’000

£60,001 - £70,000 5 4£70,001 - £80,000 2 -£80,001 - £90,000 1 1 8 5

ActionAid’s Executive Director was the highest paid employee in the year and received the following remuneration in 2012: £88,933 salary (2011: £84,651). In addition £8,893 (2011: £8,465) was paid into a defined contribution pension scheme on his behalf.

Of those employees who earned £60,000 or more during the year (as defined above) employer contributions were made to defined contribution pension schemes for all eight (2011: five) employees. During the year this amounted to £55,976 (2011: £34,324).

ActionAid has an expenses policy in place which controls what can and cannot be claimed by trustees, staff and volunteers. Expenses can only be claimed if they have been incurred for valid and necessary business purposes, are on the approved list of allowable expenses, have been authorised and have supporting documentation. ActionAid incurs significant costs on overseas travel, but this must always be by the most cost effective method and using public transport where possible. All travel is for valid business reasons and ActionAid is constantly seeking new ways to avoid overseas travel and find alternative ways to communicate and manage the business.

In 2012 Richard Miller, the Executive Director incurred costs of £2,298 (2011: £7,075).

9. Trustees’ remuneration

No remuneration or other payments have been made to the trustees of ActionAid for their services as board members or for other services provided to the organisation in 2012 or 2011. The most significant element of trustees’ expenses is the cost of visits to country programmes but also includes attendance at board meetings (both ActionAid and ActionAid International). In 2012, seven trustees incurred a total of £5,879 (2011: £5,714 was paid to five trustees) through expenses reimbursed and costs incurred by ActionAid on their behalf.

Tennyson Williams is an employee of ActionAid International in addition to his role as a trustee of ActionAid (see note 18 for further details).



2012 201110. Incoming resources before transfers £’000 £’000

Net incoming resources are stated after the following charges:Operating lease rentals - property 430 427 430 427

Leasehold Office improvements equipment Total11. Tangible fixed assets £’000 £’000 £’000

CostAt 1 January 2012 609 780 1,389Additions - 128 128At 31 December 2012 609 908 1,517 Depreciation At 1 January 2012 57 391 448Charge for year 41 158 199At 31 December 2012 98 549 647 Net book value At 31 December 2012 511 359 870At 31 December 2011 552 389 941 All tangible fixed assets held by the charity to further charitable objectives and not for investment purposes.

2012 201112. Debtors £’000 £’000

Accrued income 327 587Other debtors 34 76Prepayments 197 152Tax recoverable 1,168 1,046Amounts due from employees 28 32Total debtors 1,754 1,893 Amounts due from employees represent floats for overseas visits forming part of the employee’s role and season ticket loans.



2012 201113. Creditors £’000 £’000

Amounts falling due within one year: Interest-free loans 86 86Trade creditors 756 619Accruals 940 454Other creditors 19 171Amounts due to ActionAid International 3,018 1,991Taxation and social security 319 192Deferred income 29 42Total creditors 5,167 3,555

Balance Balance as at 1 Jan New Utilised in as at 31 2012 designations the year Dec 2012

14. Designated funds £’000 £’000 £’000 £’000

Designated funds Tangible fixed assets fund 941 128 (199) 870Department for International Development PPA designated fund 306 - (306) -Total designated funds 1,247 128 (505) 870

Designated tangible fixed assets fund: The fund for fixed assets represents the net book value at the balance sheet date of unrestricted tangible fixed assets. This fund is not therefore available for current expenditure, as the assets are used in the day to day operation of the charity.

Department for International Development Programme Partnership Agreement (DfID PPA) designated fund: This fund was designated in 2011 as part of the DfID PPA, to ensure effective monitoring and evaluation against the programme log frame in five country programmes and for learning projects in the UK, and was fully utilised in 2012.

Balance Balance as at 1 Transfers as at 31 Jan 2012 Income Expenditure in/(out) Dec 201215. Restricted funds £’000 £’000 £’000 £’000 £’000

Restricted funds Africa 328 14,429 (14,529) 179 407Asia 918 11,228 (11,691) 361 816Latin America and the Caribbean 14 2,918 (2,953) 43 22International projects and other funds 1201 5,909 (5,652) (578) 880Total restricted funds 2,461 34,484 (34,825) 5 2,125

The 2011 Trustee Report & Accounts showed permanent endowment funds totalling £0.5m. Due to the complexity of complying with the terms of the bequest ActionAid applied to the charity commission to relax the terms and free the monies from the very tight restrictions. In February 2012 permission was granted to recognise the endowment as a restricted fund to be spent on education in India and so the balance is now shown in restricted funds.



15. Restricted funds continued

Restricted funds: Restricted funds held by ActionAid at the start and end of the year include funds for European Union funded projects. ActionAid also holds funds for a small number of projects or activities which are managed by ActionAid directly. All other incoming resources are granted to ActionAid International on receipt as ActionAid International is the entity within the ActionAid family which holds and manages the vast majority of restricted funds.

The expenditure in the table above includes direct payments made to country programmes for EU funded projects. At the year end, some funds sent directly to country programmes may not have been entirely spent.

Transfers mainly represent transfers of income received from the European Union for international projects. Funds are transferred from centrally held project funds to each country programme participating in the project and are made annually in line with budgeted expenditure at country level for each project. The level of transfers in 2012 was similar to 2011, and included large amounts relating to the EC funded International Food Security Network, and also to the ECHO project - A Disaster Resilient Future: Mobilising Communities and Institution for Effective Risk Reduction.

2012 2011 £’000 £’000

The balances on restricted funds as at 31 December are made up of:EU and ECHO funded projects 1,513 1,576Other projects managed by ActionAid 612 885Total restricted funds 2,125 2,461

Projects funded by the European Commission are generally development projects intended to run for several years; projects funded by the European Commission Humanitarian Aid Office are short term emergency relief projects. Projects may be based in one country or may be initiatives spanning a number of countries internationally.

Fund balances may be negative when expenditure is made on a project that is expected to be reimbursed by a government or other agency, but where, at the end of the financial year, not all the conditions have been met that would justify this income being recognised within the accounts. This results in an excess of expenditure over income on some project funds at the year end point. The total deficit fund balances at the year end amounted to £0.5m (2011: £1.04m). The trustees consider that the likelihood of reimbursement is sufficient to justify carrying the deficit fund balances at the end of the year for all projects in deficit.

One fund balance in the “EU and ECHO funded projects” category in the table above showed a deficit balance of more than £100,000. There is a balance of £282,088 on “Strengthening Livelihood of Vulnerable Households in Northern Parts of Afghanistan Linking Relief to Rehabilitation and Development”. The pre-financing was against the final payment of the project which ended on December 24 2012, expected to be received by July 2013.

Restricted Total Income Designated General 201216. Analysis of net assets between funds £’000 £’000 £’000 £’000

Fund balances at 31 December 2012 are represented by: Tangible fixed assets - 870 - 870Current assets 3,165 - 9,967 13,132Current liabilities (1,040) - (4,127) (5,167) 2,125 870 5,840 8,835

Unrestricted



2012 201117. Grants received £’000 £’000

Grants received in 2012 from the UK Department for International Development: Partnership Programme Arrangement (PPA) 4,144 4,154Total voluntary income 4,144 4,154 Access to Justice Programme - 378Enhancing Community Resilience Programme 227 -Immersions 4 -NGO Humanitarian Reform Project - (6)Partnership Programme Agreement (PPA) - Latin America - 125Total incoming resources from charitable activities 231 497Total grants received from the UK Department for International Development (DfID) 4,375 4,651

Expenditure of these grants has been in accordance with the terms agreed with DFID. The PPA income represents 7% of ActionAid’s total income.

Grants received in 2012 from the UK Foreign and Commonwealth Office: Reducing Violence Against Women in Afghanistan 91 -Total grants received from the UK Government 4,466 4,651 Grants received in 2012 from Comic Relief were as follows:Transforming Girls Education in Nigeria and Tanzania 380 356Reducing Sexual Exploitation of Girls In Recife 252 -Support for Women and Children Living with and Affected by HIV and AIDS in Kenya 106 124Rebuilding the lives of Street Children in Rajasthan - 12 738 492 Grants received in 2012 from the Big Lottery Fund were as follows: Violence against Girls in schools (Multi country) 868 1,006Development Grant for Somaliland 6 -Rights for life - Tsunami (Multi-country) - 64 874 1,070 Grant received in 2012 from The Dutch Ministry for Foreign Affairs was as follows : FLOW Women’s rights to sustainable livelihoods (Ghana & Rwanda) 496 - 496 -



18. Related party transactions

ActionAid recognises other parts of ActionAid International as related parties.

2012 2011 £’000 £’000

Grants to ActionAid International 39,143 38,443 39,143 38,443

See note 7 for details of grants to ActionAid International.

See note 13 for creditor balances owed to ActionAid International at the balance sheet date.

As noted in the constitution and governance section of the report of the board of trustees, ActionAid International is entitled to appoint one trustee to ActionAid’s board. The designated trustee is Tennyson Williams the Country Director of Kenya. His remuneration from ActionAid International is in line with other roles of comparable responsibility in ActionAid International and, more generally, with market rates. He receives no remuneration for his work as trustee of ActionAid.

19. Subsidiary undertakings

ActionAid has one subsidiary undertaking – ActionAid Enterprises Limited - a wholly-owned subsidiary incorporated in Great Britain and registered in England and Wales (No. 5011412)

There was no activity undertaken in the subsidiary during 2012.

The total investment in the subsidiary is £1 (2011: £1).

20. Obligations under operating leases

2012 2011ActionAid had annual commitments at the year end under operating leases expiring as follows: £’000 £’000

Within one year - -In two to five years - -After 5 years 481 331 481 331

21 Contingent assets and liabilities

ActionAid originally set up most of ActionAid International’s country programmes and still owns the assets of those entities that have not subsequently become affiliates. Country programmes are now managed by ActionAid International rather than ActionAid.

Country programme assets are no longer included in these accounts after the 2007 change in accounting policy on country programmes. However ActionAid retains the legal right to take back management of its country programmes from ActionAid International under a termination clause incorporated into the legal agreements in place over management of country programmes.



21 Contingent assets and liabilities continued

So ActionAid has contingent assets in the form of the assets held by those country programmes which were originally set up by ActionAid.

No situation exists, or is anticipated, whereby ActionAid would exercise its right to terminate the agreements with ActionAid International, however the legal position is stated here to give a full picture of the assets of ActionAid. It is not practical to estimate the value of assets which would revert to ActionAid control and would be included in the accounts. However, the funds held in ActionAid country programmes at the end of the year but not included in these accounts were £20.5m (2011: £19.3m).

There also exist potential contingent liabilities for ActionAid relating to the country programmes which are legally owned by ActionAid. Such a liability would only impact ActionAid if ActionAid International had insufficient funds in hand to discharge the obligations of a country programme. ActionAid believes such a circumstance is improbable and any notional exposure cannot be reasonably estimated.

As at the end of the year there were a number of projects on which funds are outstanding from the donor pending finalisation of donor audits. Amounts disallowed are generally insignificant as a proportion of overall project budgets and these amounts are considered to be fully recoverable as they are covered by ActionAid International.



ActionAid is a full affiliate member of ActionAid International. ActionAid International is an association registered in The Hague (Netherlands) with its international secretariat and head office in Johannesburg, South Africa.

Board of trusteesAndrew Purkis OBE, ChairPatricia Whaley, Hon Treasurer & Vice ChairJane Esuantsiwa Goldsmith, Vice ChairFrank McLoughlin CBEGemma PetersJane Buckley SanderMark Haysom CBEMike ForrestPrash NaikRosalind EybenTennyson Williams

Governance and board development committeeJane Esuantsiwa Goldsmith, Chair Andrew Purkis OBEPrash NaikRosalind Eyben

Patricia Whaley, Hon Treasurer and Chair Mike ForrestMark Haysom CBEGemma PetersSue Logan (co-opted)

Further information about trustees is available on the ActionAid website - www.actionaid.org.uk

Richard Miller, Executive DirectorJudith Davey, People, Performance & Accountability DirectorHelen McEachern, Fundraising Director (maternity leave)Peter Reynolds, Interim Fundraising DirectorSue Bishop, Communications Director (left during 2012)Janet Convery, Interim Communications Director Belinda Calaguas, Policy & Campaigns Director (left during 2012)Beverley Duckworth, Interim Policy & Campaigns DirectorDavid Woodbine ACA, Central Resources DirectorSteve Eddy, Central Resources Director (appointed March 2013)

PatronHis Royal Highness, The Prince of Wales

Legal and administrative informationAuditors (move from Buzzacott to Sayer Vincent in 2012)

Sayer Vincent (appointed in 2012)8 Angel Gate326 City RoadLondon, EC1V 2SJ

Buzzaccott LLP130 Wood StreetLondon EC2V 6DL

SolicitorsBates, Wells & Braithwaite LLP2-6 Cannon StreetLondon, EC4M 6YH

Bankers (move from HSBC to Co-operative in progress at end of 2012)

The Co-operative Bank plc Charity & Social Enterprise Banking4th Floor, Prescot StreetLondon E1 8AZ

HSBC Bank plc52 Oxford StreetPO Box 1EGLondon W1A 1EG

Registered Office33-39 Bowling Green LaneLondon, EC1R 0BJT 0203 122 0561E [email protected]

Corporate directory

trustees report & accounts 2012

Documents